Key Points:
- NCC wins ₹2,090.5 cr Bihar project, shares up 5%.
- Stock volatility: mixed short-term, strong 5-year gains.
- Earnings down, but order book supports growth.
Strong order inflows and new project wins boost investor confidence despite recent earnings dip. NCC share price rose nearly 5 percent on Monday after the company announced that it had secured a ₹2,090.5 crore contract from the Bihar Water Resources Department. The stock touched an intraday high of ₹218.23 apiece, marking a gain of 4.77 percent before closing with modest gains.
The project, centered on the construction of the Barner Reservoir Scheme in Jamui district, includes building reservoir and dam structures, irrigation canals, and related infrastructure. According to the company’s exchange filing on September 15, the construction phase will take 30 months, followed by a 60-month defect liability period.
The contract is valued at ₹2,090.5 crore, excluding GST, and has been awarded under standard domestic terms. NCC confirmed that the deal does not involve related-party transactions.
Stock Performance Remains Volatile Despite Long-Term Gains
While the latest contract boosted trading sentiment, NCC share price have shown mixed performance over different time horizons. The scrip has gained more than 17 percent over the past six months but is still down nearly 31 percent compared with the same time last year.
Over a five-year period, however, the stock has delivered multibagger returns, rising more than 560 percent, reflecting strong growth in its order book and execution capabilities. Analysts note that such volatility is not unusual for infrastructure companies, given their dependence on government contracts, execution cycles, and working capital management.
The latest win comes on top of significant fresh orders received in the first quarter of fiscal year 2026. In the June quarter, NCC secured new projects worth ₹3,658 crore, expanding its consolidated order book to ₹70,087 crore by the end of the period.
Recent Earnings Show Pressure on Margins and Revenue
Despite the positive market reaction to the Bihar project, NCC share price recent earnings results suggest challenges in profitability. The company reported a consolidated net profit of ₹192.1 crore for the first quarter of FY26, representing an 8.4 percent decline from ₹209.9 crore in the same quarter of the previous year.
Revenue from operations also fell 6.3 percent year-on-year to ₹5,178.9 crore, compared with ₹5,527.9 crore in Q1 FY25. Total income slipped 6 percent to ₹5,207.9 crore during the same period.
Operating performance showed a mixed trend. While EBITDA dropped 4.3 percent year-on-year to ₹456.1 crore, the EBITDA margin improved slightly to 8.8 percent, compared with 8.6 percent in the year-ago quarter. Industry analysts attribute the margin improvement to better project execution and cost management, even as overall revenue declined.
Outlook Supported by Strong Project Pipeline
Market watchers believe that the new Bihar reservoir project strengthens NCC’s outlook, particularly as infrastructure spending remains a government priority. The company’s expanding order book provides revenue visibility for the coming years, though execution timelines and input cost pressures will remain key factors for profitability.
Investors are expected to track NCC’s upcoming quarters closely to see whether the company can reverse recent declines in revenue and net profit while sustaining order inflows. With NCC share price trading significantly below last year’s levels but supported by long-term growth, market sentiment may hinge on how effectively NCC balances execution with financial performance.
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